Petro resaltó logros económicos de Colombia y propone al Banco de la República una tasa de interés del 7,1% para impulsar la economía

Colombian President Gustavo Petro sent a clear message to the Banco de la República on Friday, suggesting a 7.1% interest rate as a means to stimulate the economy.

This statement came as he shared a video of his economic advisor, Celso Tete Crespo, highlighting positive macroeconomic indicators in the country. Petro noted in his post on X: “If the aim is to boost the Colombian economy right now, the Banco de la República should set an interest rate of 7.1%, which would make the debt sustainable and manageable.”

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Crespo’s video served as the foundation for this presidential intervention, aiming to showcase Colombia’s progress compared to the prior administration.

During his presentation, the advisor pointed out: “The dollar stands at 3,700 pesos today, as opposed to 4,400 left by Duque. Inflation is at 5.1% now, while Duque left it at 11%. Unemployment today is at its lowest in this cycle. The minimum wage is at 2,000,000 pesos per month. The economy is growing at 3.6% in Colombia.”

Crespo further shared other significant achievements: “Tourism saw 37,000,000 travelers in 2025 through air and land terminals. Household consumption is growing at 3.4%. People are spending more. There’s a 9% growth in agriculture in Colombia due to the largest agrarian reform in the world.

These numbers, according to Petro, support the idea that a 7.1% interest rate could further enhance the Colombian economy, bolstering investment and ensuring the sustainability of public debt. However, the economic landscape is not without its challenges.

The recent 23% increase in the minimum wage has raised warnings in the financial sector, as it could lead to a rebound in inflation, with annual inflation projected to rise to 6.2% in 2024, according to the Economic Research team at Banco de Bogotá.

This situation could compel Banco de la República to raise its interest rate beyond 11%, impacting price stability, fiscal balance, and household purchasing power.

The Autonomous Committee of the Fiscal Rule (Carf) has warned that the increase in the minimum wage will lead to a fiscal deficit of at least 5.3 trillion pesos this year, a figure that could reach 8 trillion pesos by 2027.

According to Carf: “This decision creates a substantial impact on public finances, in a context where the fiscal situation is critical and the Government has declared an economic emergency.”

The agency also noted that the salary adjustment will affect pension expenditure in the traditional system and payments to public officials with this level of remuneration, leading to a total impact of 0.6 trillion pesos.

The Economic Research team at Banco de Bogotá projects that, in a scenario of peso depreciation and increased salary indexing, inflation could reach 7% by the end of 2026.

In particular, pressure is anticipated on the real estate market, as some landlords may seek to raise rent beyond legal limits, while the rental inflation is expected to rise from 5.1% in 2025 to 5.5% in 2026.

Other sectors will also likely face repercussions. Transportation fares, parking fees, co-ownership expenses, and moderating EPS fees could increase due to higher labor costs. The report states: “Labor-intensive services will lead inflationary pressures, driven by higher labor costs, with inflation projected to be in double digits for 2026.”